Implication of Trims Agreements in International Trade and Relationship with Legal Development in Indonesia

As a member of the World Trade Organization (WTO), Indonesia shall implement the provisions contained in the WTO Agreement including agreements concerning investments as arranged in the TRIMs. With the ratification of the WTO Agreement, various legal reform measures shall take place. In relation to investment it is necessary to undertake a policy change in the field of investment that not only takes into account the obligations set out in the TRIMs agreement, but so far as possible takes into account the national interest by utilizing exceptions and transition periods while updating the investment legislation in line with the TRIMs deadlock. In order to avoid conflicts in their application, the TRIMs Agreement shall be understood well and in the case of an unclear term, interpretations shall be made under general rules of international treaty interpretation. Renewal of investment regulations is only one of the means that is expected to solve investment problems in Indonesia. Factor that is not less important is how to create a conducive climate to try so that investors want to invest in Indonesia. Conducive climate can be created with the guarantee of security, political stability and harmonious labor relations.